NiceHash Implements Lightning Network for Streamlined Miner Payouts

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Fri, 03/29/2024 - 13:00
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NiceHash has recently updated the way it pays miners. Now, it implemented the Lightning Network, which has made over 1,800 payments to miners every week more efficient compared to traditional Bitcoin transactions.

The Lightning Network is a system designed to make Bitcoin transactions faster and cheaper. NiceHash is not new to this; they have been running a Lightning Network node, which is like a checkpoint on the network, for a long time. In fact, their node is one of the top three globally based on performance and holds 2.2% of the total capacity, which is a large amount for this network.

Source: NiceHash

Back in early March, NiceHash started using the Lightning Network to pay miners for their hash power, which is the computing power they contribute to the network. This change makes it easier and less costly for miners to get their earnings. NiceHash's main service is similar to a marketplace where people who want to mine digital currencies can rent the necessary computing power from miners. This setup allows miners to have a steady income and less work managing their equipment.

Since they began Lightning payouts, more than 700 new Lightning addresses are being created each week, and on top of that, there are about 1,136 deposit transactions, showing that people are interested in using the Lightning Network a lot.

NiceHash has been a big supporter of the Lightning Network for a long time, and by starting to use it for payments, they are helping more people adopt this technology. While the privacy of the Lightning Network means we cannot know all the transactions happening, NiceHash is seeing nearly twice as many transactions each week compared to what Kraken, another crypto service, had when they first started using the network.

NiceHash started in 2014 and has grown a lot since then. Now, it is the biggest marketplace of its kind, with more than 250,000 miners active every day from all over the world. The platform connects people who want to sell their computing power with those who need it to mine cryptocurrencies.